Lumber and used trucks: Two things you probably don't want to be in the market for right now.
The supply of late-model sleeper tractors remains tight as a supply chain crunch has slowed fleet replacement cycles and is driving prices for tractors with fewer than 600,000 miles "in the stratosphere," according to J.D. Power Commercial Vehicles Senior Analyst and Product Manager Chris Visser.
Month-over-month, J.D. Power's benchmark group of 4-6 year-old trucks – compared to the first 4 months of 2020 – is bringing 76.6% more money at auction, and Visser said he doesn't see much relaxation in pricing for trucks with average to low mileage for at least another two months.
According to Ritchie Bros., for the three months ending April, prices for used truck tractors increased 24% compared to the same time last year.
Steve Tam, Vice President at ACT Research said new truck production and sales continue to reduce the flow of units into the secondary market, limiting its potential, adding, "comments from dealers as well as classified listings – a proxy for inventory – corroborate the lack of supply that has come to define the current cycle, and the drumbeat of demand shows no signs of easing."
The average sleeper tractor retailed in April was 68 months old, had 432.099 miles, and brought $62,786, according to J.D. Power. Compared to March, this average sleeper was identical in age, had 25,779 (5.6%) fewer miles, and brought $5,238 (9.1%) more money. Compared to April 2020, this average sleeper was 7 months older, had 34,740 (7.4%) more miles, and brought $20,514 (48.5%) more money.
